Indian Sustainability Sector
spearheaded by the EV mobility sector
The Sustainable landscape is rapidly expanding, driven by a remarkable annual growth rate (CAGR) of 20.8%.
Sustainability Market Growth Story
With heightened attention and favorable policies, all relevant sectors are experiencing growth, spearheaded by the EV mobility sector. According to Fortune Business Insights, the EV sector is projected to skyrocket from USD 3.21 billion in 2022 to a staggering USD 113.99 billion in 2029, boasting a remarkable CAGR of 66.52% (3.18X Growth). This surge will see EVs capture about 40% of India’s automotive market, up from a mere 5% currently.
Key Points About Other Leading Sectors
The renewable energy market projects a substantial growth rate of 8.71% by 2032, fueled by technological advancements and increasing concerns about climate change.
The sustainable fashion industry is on an upward trajectory, with expectations to rise to a CAGR of 9.1% by 2030.
Agriculture will continue to retain its prominence with a market size estimated to grow at a CAGR of 4.90% by 2029.
Factors Propelling the Growth
Rising environmental concerns, advancing technology, and growing consumer awareness are propelling demand for greener alternatives. Indian government initiatives, such as production-linked incentives (PLI) for EVs, ambitious solar power targets, and support for organic farming, provide a conducive environment for private sector innovation. This has spurred domestic automakers to accelerate EV development, major corporations to invest in renewable energy, and a heightened focus on sustainable textiles and agricultural practices.
Investment Landscape
The Indian electric vehicle (EV) industry witnessed rapid growth, with VC and PE firms investing $666 million across 24 deals in 2021, marking an 8x year-on-year surge from $1.7 billion in 2020. Major private equity players were actively engaged in discussions in 2021 to invest $300 million in leading two-wheeler giants' EV expansion plans. Additionally, a Dubai-based conglomerate announced plans to invest $30 million to establish an EV plant in Telangana in the same year, further boosting growth in the Indian electric mobility sector.
The Road Ahead
As India's focus on sustainability grows, expect to see more mergers and investments in renewable energy, increased support for green startups, and more funding for eco-friendly projects.
India is moving towards a more sustainable future, driven by government support, new technology, and changing consumer preferences.
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